As we follow the sun through its appointed circuit, we’ve learned that additional layoffs have occurred today out west. Manatt, Phelps has laid off 25 people today: 17 lawyers and 8 staff.
Here’s the statement the firm provided to Above the Law:
The broad economic slowdown continues to present challenges to businesses in every industry. The quality and breadth our national practice, as well as initiatives to improve resource utilization and reduce expenses, have positioned us to meet these challenges. Responsible stewardship, however, requires ongoing evaluation and appropriate alignment of staffing levels with client needs.
With this in mind, we have made the extremely difficult decision to reduce our lawyer ranks by 17 and our staff ranks by 8. Due to the nature and timing of these actions, we have provided those affected with financial and other assistance to help with their transitions.
We understand that the layoffs took place in the finance, tax, and advertising practice groups.
This is the second round of cuts for Manatt. We reported earlier that Manatt has already laid off 47 people since October, 2008.
A tipster also informs us that Manatt first years will be taking a pay cut:
Bill Quicksilver announced … that first year salaries would be reduced to $145K starting April 1. And no on campus recruiting.
Is this the new trend, lay people off while cutting salaries? It certainly appears that firms are trying to finish off this round of cuts before Passover and Easter.
Update (4:48): Additional details about severance after the jump.
Multiple tipsters tell us that the Manatt severance package is a scant 60 days.
The other interesting note is that Manatt summer associates are also taking a pay cut. We understand that Manatt summers will get paid on a $125K scale over the summer. That would be less than what Manatt first years are now making.
Something tells me that Manatt will not be the first firm to cut summer salaries.
Earlier: Nationwide Layoff Watch: Collected News about Manatt Phelps
blah blah
“And no on campus recruiting.”
Wow, that is not a good sign.
first to post ManaTTT
I loved Manatt!
Starring Mike Connors as Joe Manatt.
I can’t even remember if Manatt was my client. That goes to show how insignificant these people are
Third tier firm in a second tier market. Will we be reporting on the 12th most powerful firm in Memphis next?
“[o]ther assistance to help with their transitions.” I guess that’s where I come in.
I really like Elie, but what praytell, leads you to believe that firms are trying to get things done in anticipation of passover and easter.
the sky is falling – jesus doesn’t rise, the jews don’t reach the promised land
145k….the trend to continue?
http://www.law.com/jsp/article.jsp?id=1158743129810
HEY GUYS! MANATT IS THE SCOND FIRM TO RAISE TO $145k IN LOS ANGELES!
2009 is the new 2006…
oh, and QUINN REMAINS! (at $160k)
Before 2000, Manatt paid less than market, I believe. It should continue to do so.
Bill, you didn’t go far enough. Reducing first year salaries to $145K? Who are you tyring to impress with your less than stellar firm? You would have impressed me if you reduced incoming first year salaries to $115K. No OCI confirms my earlier advise to first and second year law students. Let me reiterate: Drop out of law school now! Leveraging yourself more in student loan debt for a low prospect is foolish. If you had a scintilla of intelligence, you would drop out now and pursue another field such as nursing.
I’ve heard rumbles and grumbles that a few DC firms are on the 145k path now. I’ve even heard ‘oh holy shit’ that at least one is paying some first years 125k…
They must be ripping bong hits also also
The economy has been a boon for Elie Mystal. If law firms weren’t firing/shortening summers/cutting salaries and bonuses, one wonders what he could possibly write about.
13 – list them with a disclaimer.
they have a cool looking office building in century city
@12 — “confirms my earlier advise” …. oh Dearest Partner Emeritus, certainly you meant “advice,” did you not?
21 – You are slipping. It is “advice,” not “advise.”
What the heck — where are my “safest firms” brackets?!?
None of these other silly articles mean anything, damn it!!!
Stop teasing me, you sick fuckers!
19 – You can see the future!
ditto 10
MILBANK JUST ANNOUNCED..JAN 25 2009
LA to 190K!!!!!!!!!
what a craphole
I’m putting a shout out to my fellow layoff-ees – when you were axed, did your firm pay you for accrued but unused sick days? Mine didn’t even though I asked – twice. No explanation but they did pay me for accrued and unused vacation. My reading of California law is sick pay, like vacation pay, is a form of deferred compensation that an employer is required to pay upon dismissal.
Has anyone come up against this issue? Am I missing something here? I need the severance so I’m not going to raise it with my former firm until my last paycheck clears. For the most part, I’m okay with the layoff – wasn’t really working out for me there anyway – but I have 32 days accrued and that’s more than one month’s salary. I’m not rich enough to kiss off $13K – $15K.
Any thoughts would be greatly appreciated
Layoffs are totally lame.
Hang a shingle or hang yourself, biglaw babies.
I am a 2L. Near the top of my class and horribly under-employed. I think law firms should go back to 125K. Anything that might stimulate hiring.
“Near the top of my class…”
Where?
milbank just delayed start dates til jan 25 2010
26 — wow, that is an actual ligit question that ATL should use for that “Please handle thx” crap they do…
32-Did Milbank announce anything else?
23 – so they retroactively started 2 months ago?
“Something tells me that Manatt will not be the first firm to cut summer salaries.”
Um, last?
ATL is setting the market for layoffs. You are doing harm. Before there used to be reputational costs, but now it justifies layoffs and delayed start dates.
27–My firm did (in NYC) even though I didn’t ask. It was a nice ‘bonus’ added to my severance pay.
I meant ‘26′
- 38
24 – LA to 190 (days later than normal start dates)!
Milbank also cut back to the now-standard 10 weeks for its summer program.
too good not to share: http://www.accessatlanta.com/entertainment/content/entertainment/stories/2009/03/30/shamwow_guy_shlomi_prostitute.html?cxntlid=thbz_hm
I’m putting a shout out to my fellow layoff-ees – when you were axed, did your firm pay you for accrued but unused sick days? Mine didn’t even though I asked – twice. No explanation but they did pay me for accrued and unused vacation. My reading of California law is sick pay, like vacation pay, is a form of deferred compensation that an employer is required to pay upon dismissal.
Has anyone come up against this issue? Am I missing something here? Does it really depend on the specific language utilized in the employee manual as suggested by someone? I need the severance so I’m not going to raise it with my former firm until my last paycheck clears. For the most part, I’m okay with the layoff – wasn’t really working out for me there anyway – but I have 32 days accrued and that’s more than one month’s salary. I’m not rich enough to kiss off $13K – $15K.
Any thoughts would be greatly appreciated
37 – agreed, you have to wonder which side ATL is on these days
Reporting the news and even the gossip isn’t doing the harm. The firms are doing that. Or the economy, whichever way you want to view it.
Freedom of information is one of those legal thingys we prize here.
I thought everyone on this blog said LA was fine?
Change has arrived for 25 more people at manatt.
To #43 – I’m not an employment lawyer but my guess (with the standard disclaimer: this ain’t legal advice so don’t rely on it) is that due to your professional, non-hourly employee status as an associate attorney while at your firm, the law firm would not be required to pay you compensation for unused sick days. But check your employment manual, if the firm gave you one. Also, I assume some states such as NY and California may have more liberal employment laws; otherwise, its probably up to the firm in its discretion if they want to “reward” you for not taking sick, although I spent many days feeling sick about the boring assignments (government contracts, barf) I got in my first year as a young associate.
43–If you are in California, the designated accrual of sick days apart from vacation or general PTO days probably means that you have to be sick to take the time, and thus accrued sick days are not payable as part of final wages. Check your employee handbook for claiming payment for accrued sick days. Also, if you receive a severance amount that is greater than the firm would owe you in sick days and other compensation (assuming anything at all would be owed), you have effectively been paid an amount that us undisputedly above what you were owed and thus you could not prove damages. Still, if you want to ask…
I’m putting a shout out to my fellow layoff-ees – when you were axed, did your firm pay you for accrued but unused sick days? Mine didn’t even though I asked – twice. No explanation but they did pay me for accrued and unused vacation. My reading of California law is sick pay, like vacation pay, is a form of deferred compensation that an employer is required to pay upon dismissal.
Has anyone come up against this issue? Am I missing something here? Does it really depend on the specific language utilized in the employee manual as suggested by someone? I need the severance so I’m not going to raise it with my former firm until my last paycheck clears. For the most part, I’m okay with the layoff – wasn’t really working out for me there anyway – but I have 32 days accrued and that’s more than one month’s salary. I’m not rich enough to kiss off $13K – $15K.
Any thoughts would be greatly appreciated
12–
Advise? How about advice? You must have been admitted to whatever schools you attended under the George W. Bush affirmative action plan. Who are you trying to impress with your writing?
Oh,and one more thing: HOW DARE YOU, SIR!!!
–Junkyard Dog
yay! welcome to my world! I’ve been laid off!
now, come to my blog: laidoffdiary.wordpress.com and tell me what’s on your mind!
litigation attorneys were axed too.
are all the layoffs in the LA office?
The ship be sinking…
They axed TAX attorneys? What kind of TTT is this place?